Israel Denies Report It Will Allow Britain to Use Military Bases

August 7, 1956

JERUSALEM (Aug. 6)

A report to the effect that the Israel Government has agreed to allow Britain to use military bases in Israel was officially denied here today. The report, which was carried by newspapers in London, was termed “completely unfounded” by a government spokesman here.

It was also officially stated here today that the Israel Cabinet did not discuss yesterday any plans for an E lath-Ha if a canal as an alternative to the Suez Canal. A government spokesman denied a report on this subject which had been heard in many quarters. The spokesman revealed that Foreign Minister Golda Meir’s report to the Cabinet on the Suez situation was based on information received from Israeli Embassies in Washington, London and Paris.

In other developments, the Cabinet voted to establish an agricultural export corporation to find new markets for Israel’s cash crops. The corporation will have a 250,000 pound capitalization, in which the government, Jewish Agency and various agricultural and marketing organizations will be involved. The Ministers also approved a draft law setting up a cotton exporting council to handle one of Israel’s newest and rapidly expanding crops.